Which term describes the phenomenon of paying for goods in installments?

The term that best describes the phenomenon of paying for goods in installments is installment buying. This concept refers specifically to a purchasing method where the buyer pays for a product over a period of time through a series of scheduled payments, or installments. This approach allows consumers to acquire goods without the immediate financial burden of paying the full price upfront, thereby making higher-priced items more accessible.

In installment buying, each payment contributes to the total cost of the item, and once all payments are completed, the buyer owns the product outright. This method is commonly used for large purchases such as automobiles, appliances, and furniture.

Leasing, on the other hand, involves paying for the use of a product over a set period without ownership. Financing generally refers to obtaining money to purchase goods or services, involving a variety of methods like loans, which may or may not lead to installment payments. Factoring involves the sale of receivables to improve cash flow, which is a different financial process altogether. Each of these terms pertains to different financial strategies or methods, but installment buying specifically captures the essence of making payments over time for ownership of goods.